U.S. Targets $28 billion E-Waste Market to Counter China’s Rare Earth Grip

- The United States ramps up rare earth recycling to reduce its reliance on China. - Recycling vital metals from 62 million tons of global e-waste addresses geopolitical and supply chain needs. China controls 90% of rare earth metals. In response, the United States is racing to recycle critical resources from its 8 million tons of annual e-waste. The federal government and private companies are championing this initiative, aiming to repurpose valuable materials like neodymium and lithium from discarded electronics and electric vehicle batteries. This effort mitigates growing geopolitical tensions and strengthens domestic supply chains. On July 13, 2025, Cryptopolitan reported that the U.S. government, working alongside corporations such as Glencore, Illumynt, and Cyclic Materials, is advancing projects to extract rare earth metals from electronic waste to expedite domestic resource availability. In a parallel move, the Pentagon acquired an equity stake in MP Materials, the only American rare earth mining operation, as part of a broader strategy to bolster production capabilities. However, recycling initiatives recover metals faster than the protracted timelines of new mining ventures. This initiative targets defunct electronics such as mobile phones, EV batteries, servers, and laptops, which contain critical metals like neodymium, praseodymium, and terbium. These elements are indispensable for advanced applications, from fighter jets and wind turbines to MRI machines. Adding to this momentum, CNBC recently reported that foreign entities have invested in American recycling efforts. For example, Germany's Wieland and Aurubis opened multimillion-dollar recycling plants in Kentucky and Georgia to expand capacity. Industry leaders like Ascend Elements, Redwood Materials, Cirba Solutions, and American Battery Technology are also making substantial progress recycling lithium-ion batteries, using their advanced techniques to recover lithium, cobalt, nickel, aluminum, and manganese for use in new electric vehicle batteries. However, the industry faces uncertainties tied to its reliance on the 45X tax credit, as fluctuations in government funding strategies could impact project profitability. Market dynamics further underline the urgency to advance recycling. Cryptopolitan also highlighted that the world generated nearly 62 million metric tons of e-waste in 2022, and the U.S. contributed close to 8 million metric tons. Alarmingly, recyclers only processed 15-20% of this waste. Despite these challenges, the American e-waste recycling sector reached a value of $28.1 billion last year and continues to grow at an 8% annual rate. Trade friction with China has significantly influenced the U.S. pivot to recycling. In April 2025, China imposed restrictions on rare earth magnet exports after the U.S. introduced tariffs, which destabilized supply chains for American automakers like Ford. Although Beijing issued six-month export licenses in June to alleviate disruptions, a normal supply has not returned. To complement recycling, the U.S. Department of the Interior approved the Colosseum rare earth project in California's Mojave National Preserve, which aims to establish the nation’s second rare earth mine. Despite robust support for recycling, industry insiders like Kunal Sinha of Glencore urge caution, emphasizing the risks of excessive investment. For example, battery recycler Li-Cycle recently filed for bankruptcy after receiving funding from a Glencore venture, an event that highlights the complexities of scaling these operations effectively.